A home purchase includes several fees and taxes such as the Stamp Duty. This is on top of any financing you procure and the home loan interest rate. To figure out the potential taxes, use our online Stamp Duty mortgage calculator. Here is what you should know about the tax including if it can be paid with a home loan.
Stamp Duty
The Stamp Duty is also known as the land transfer duty, which is assessed on financial transactions like property. Some leasing agreements, transfer of motor vehicles and livestock sales also qualify. It is an administrative fee that covers the work the Australian government completes to officially transfer the title and ownership. The amount depends on the property’s location, property value and property use as well as the property type. First-time home buyers often receive a significantly lower tax or no tax charge at all.
Can You Borrow to Pay it?
Yes, you can borrow to pay the tax. If you borrow, the amount increases the principal, which increases the amount paid toward interest. A mortgage is the sum of several components including an applicant’s credit history. Lenders compete for well-qualified candidates and offer them more financing with less interest. Others have to make due with less financing and higher rates. Regardless, it all has to be paid back. If you do not mind paying interest on the tax, you can borrow to pay it. Simply ask the lender’s representative to capitalise it. Otherwise, the tax comes from the down payment.
Stamp Duty Conclusion
In addition to our Stamp Duty mortgage calculator, you can also use our home loan calculator. Both allow you to enter several inputs, which change the output. Then, you begin to understand what you can afford and how much. You also see the estimated tax for a property. To receive more information about mortgages, contact our Mortgage House team.
